I have the exact model of that camera from 2003 and that series has been pretty reliable in general. The compact size is great for me, since I don't have a very steady hand. The only downfall is that it doesn't shoot well in low light situations. The back light and light is alright, but if you are in a somewhat dark room, it is kinda hard to see. If that is going to be a problem for you, I'd recommend a Sony. Their "Night Shot" is an excellent feature for shooting at night or in low light situations.

If you are going to be digitizing footage, stick with a digital camcorder like that with the Mini-DV tapes.